The KEY to All Your Real Estate Needs |
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This month's newsletter shares a lot of information about the current Treasure Valley real estate market. From record breaking median sales prices, the fast pace market that's continuing into 2021, to changing home price ranges. I hope you find this interesting and informative.
I love working with my clients and staying in touch with them. There is nothing better than being a part of a dream come true; Or, seeing the positive things happening in their lives. This month I'm shining the spotlight on three inspirational clients.
Stay Safe & Be Well!
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January 2021 Market Report |
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Key Market Takeaways...
- The first month of 2021 saw a continuation of 2020 trends — insufficient inventory compared to demand, faster market times than a year earlier, and persistently low mortgage rates — which combined, led to a new record median sales price in January of $454,000 in Ada County and $338,490 in Canyon County.
- Looking specifically at existing homes in Ada County, the median sales price was at $443,500 in January, also a record, and an increase of 30.4% from last year. For many sellers, higher home prices usually mean greater equity, which can be used for another home purchase, to fund a business, send a child to college, or a variety of other opportunities.
- For some buyers, the higher prices have caused affordability challenges, while others have found the low mortgage rates have increased their purchase power, helping them buy despite the rising prices. The average rate for a 30-year fixed mortgage was 2.73% in January 2021 compared to 3.60% last year.
- In January 2021, the percent of original list price received on existing home sales was 103.5%, compared to 97.2% in January 2020. This indicates that multiple offer situations are becoming more common, and buyers are willing to pay more to get an accepted offer. Among existing homes, the $400,000–$699,999 price range for existing homes was the most competitive, with the percent of original list price received reaching 104% or more, in January.
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A Fast Paced Market...
- Most buyers and sellers have also experienced a competitive, fast-paced market where offers and decisions must be made quickly. To understand just how fast things have been moving, the chart below reflects the average pace of existing home sales in Ada County over the last 15 years.
- The gray bars show the average time between when an offer to purchase a home was accepted and when the sale officially closed. It has remained at 34 days, on average.
- The blue bars show the average time between when a home is listed and when an offer is accepted. This stage has sped up significantly as illustrated by the blue bars falling well below 30 days by 2020.
- By 2020, the timeframe dropped to just 17 days, on average, meaning, if a buyer saw a home they liked, they may only have a few days, or hours even, to decide whether to make an offer as there were likely others interested. In January 2021, that fell even further, as the average days on market for existing homes was at just 13 days — 66.7% faster than the same month last year.
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Changes in Price Range...
- As shown in the chart below, buyers purchased existing homes at higher price points — with the biggest increase among homes selling for more than $700,000. That further contributed to a higher median sales price in January. For example, in January 2020, just 5.5% of the existing homes that sold were for more than $700,000, compared to 15.8% in January 2021. This mix of homes sold had a significant impact in pushing up the overall median sales price for the county.
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Patience and Perseverance...
First-time homebuyer, Henry wrote an offer on his new home 7-months ago. However, due to circumstances beyond his control it kept getting delayed, delayed and delayed! Henry hung in there, and at the end of January, became the proud owner of a detached home in Boise with equity! And, probably one of the last homes in Boise around $200,000. Henry didn't think he'd ever own his own home. Working together with lender, Kim Demma of Guild Mortgage his dream came true!
I am SO proud of him! I am SO humbled to do what I do! I SO love my job!
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Bridges Behavioral Health...
I am always thrilled when past clients stay in touch and share what's going on in their lives. It was my pleasure to work with Jamie and Amie in 2018-2019 and help them find their new home.
Jamie and Amie just started their own clinic, Bridges Behavioral Health in Downtown Meridian. Mental health is an important component to our overall well-being. If you, or you know someone who can benefit from their services here's a copy of their brochure below or visit their website at: www.bbhidaho.com/
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January 2021 Circle of Giving...
We at Homes for Heroes, Treasure Valley are so proud to be part of this Circle of Giving and give back to those in our community who give so much.
In January, 2021, Nationally, Homes for Heroes...
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gave back $1,142,123 Million in Hero Rewards.
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connected 5,126 People with Homes for Heroes affiliated real estate professionals.
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helped 563 Heroes save money when buying, selling or refinancing a home.
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enriched 412 Communities with Hero related real estate transactions.
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awarded grant money to The Veterans Community Project to assist homeless veterans.
Join the circle by sharing this email and GIVING your HERO friends and family the gift of BIG SAVINGS on the sale or purchase of a home.
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Julie Cendejas | Cendejas Group Real Estate, Keller Williams Realty Boise
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